Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client?
A. The auditor cannot audit the financial statements since a lack of integrity exists.
B. The auditor can audit the financial statements only if the audit process does not culminate in the expression of an opinion on the financial statements.
C. The auditor is independent if he or she is able to maintain a level of professional detachment.
D. The auditor is not independent.
Answer: D
You might also like to view...
Which of the following is an online tool designed to engage customers and move them closer to a direct purchase or other marketing outcome?
A) direct mail B) infomercial C) printed catalogue D) branded community Web site E) marketing Web site
What are the advantages and disadvantages of using demand-based pricing?
What will be an ideal response?
Which of the following types of nonpossessory interest has been created in Mr. Cartworth's land?
A) an easement appurtenant B) an easement in gross C) a license D) a profit
A mortgage bond is more secure than a debenture
Indicate whether the statement is true or false.